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How Next Week's Potential Shutdown Could Impact Rates

It's that time again, maybe. By this time next week, we will either be several days into another government shutdown or in the throes of volatility following the big jobs report, but it's probably one or the other.

Officially known as The Employment Situation, the monthly jobs report is published by the Bureau of Labor Statistics (BLS), part of the Federal government's Department of Labor. If the government shuts down, so will BLS and that means Friday's jobs report would be delayed.

That's important to mortgage rates because the jobs report is the most consequential piece of monthly economic data. It's especially consequential these days as the labor market is taking the reins from inflation as the primary driver of interest rates.

Even when inflation is in focus, the jobs report is still almost always more capable of causing rate volatility. A delay would mean markets are flying relatively blind and forced to rely on other non-government data like the ADP employment report scheduled for Wednesday.

In the past, there have been instances of the jobs report remaining on schedule despite a shutdown, but that's not as likely to happen this time. At the very least, we should know by Wednesday morning at 12:01am ET.

As for the present week, it was fairly forgettable. There were multiple Fed speeches, but none of the comments rattled the rate market, for better or worse. Thursday morning's strong economic data put only modest upward pressure on rates and Friday's inflation numbers were right in line with forecasts.

Average 30yr fixed rates held a narrow range very close to last Friday's latest levels. 

20250926 nl2.png

New home sales surged, but in addition to being a volatile data series, new homes don't account for nearly as many sales as existing homes, which continued languishing near long-term lows according to a separate report a day later.

20250926 sales.png

Mortgage refi applications hit another new long-term high, but just barely, and mostly thanks to a tailwind from last week's initially low rates.

20250926 MBA1.png

Recently Released Economic Data

Time Event Actual Forecast Prior
Tuesday, Sep 23
12:35 Fed Chair Powell Speech
Wednesday, Sep 24
10:00 Aug New Home Sales (ml) 0.65M 0.652M
Thursday, Sep 25
8:30 Q2 GDP (%) 3.3% -0.5%
8:30 Sep/20 Jobless Claims (k) 235K 231K
8:30 Aug Durable goods (%) -0.5% -2.8%
10:00 Aug Existing home sales (ml) 3.96M 4.01M
Friday, Sep 26
8:30 Aug Core PCE Inflation (y/y) (%) 2.9% 2.9%
8:30 Aug Core PCE (m/m) (%) 0.2% 0.3%
10:00 Sep Consumer Sentiment (ip) 55.4 58.2
10:00 Sep Sentiment: 1y Inflation (%) 4.8% 4.8%
10:00 Sep Sentiment: 5y Inflation (%) 3.9% 3.5%
Monday, Sep 29
10:00 Aug Pending Home Sales (%) 4% 0.3% -0.4%
Tuesday, Sep 30
9:00 Jul FHFA Home Prices y/y (%) 2.3% 2.6%
9:00 Jul Case Shiller Home Prices-20 y/y (% ) 1.8% 1.6% 2.1%
9:45 Sep Chicago PMI 40.6 43 41.5
10:00 Sep CB Consumer Confidence (%) 94.2 96 97.4
10:00 Aug USA JOLTS Job Openings (ml) 7.227M 7.2M 7.181M
Wednesday, Oct 01
8:15 Sep ADP jobs (k) -32K 50K 54K
10:00 Sep ISM Manufacturing PMI 49.1 49 48.7
Thursday, Oct 02
8:30 Sep/27 Jobless Claims (k)
Friday, Oct 03
10:00 Sep ISM N-Mfg PMI 50.0 51.7 52.0
Thursday, Nov 20
8:30 Sep Non Farm Payrolls (k) 119K 50K 22K
8:30 Sep Unemployment rate mm (%) 4.4% 4.3% 4.3%

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